Question

Sasha doesn’t want to risk losing her house or car when she invests in her new business, so she decides to incorporate, which provides an advantage known as .

Answer 1

The situation in which Sasha decides to incorporate without the risk losing her house or car is known as limited liability. Limited liability means that you risk what you put in. So, if the business fails, Sasha will be not responsible for all of its debts and she will keep her car and house.